Transfer in-specie

SouthCoastBoy

When I finish work I intend to transfer my wtw work pension to a new platform. I want to stay in the market so intend to complete an inspecie transfer. My question is what happens if the new platform does not have the identical funds?

MoneySavingGerbil

The new provider will likely ask for the ISIN numbers for the existing funds you hold to make sure that they do offer them. That's what happened with my wife transferring to Fidelity earlier this year. I'm likely to have the same issue later this year myself and I strongly suspect Fidelity don't offer the Aviva branded Blackrock funds my work pension is currently in. I think the options are

1. sell the funds in your work pension and transfer as cash and hope it's quick

2. try and identify some common fund that both platforms offer that you can stomach and then move your work pension funds into that fund so that an inspecie transfer can take place and you're not out of the market for long.

I think I'll be trying for option 2. Whilts people say it's time in the market and not timing the market it would grind my gears knowing that I'd lost out if the markets moved upwards while I was in cash.

HappyHarry

You should be aware that even if your new provider does accept the funds, an in-specie transfer can take months to complete. If you are looking to access your pension funds shortly after retiring, then you might want to consider the cash transfer instead.

SouthCoastBoy

HappyHarry said:

You should be aware that even if your new provider does accept the funds, an in-specie transfer can take months to complete. If you are looking to access your pension funds shortly after retiring, then you might want to consider the cash transfer instead.

Yes I am aware of the fact it may take a while to transfer. I'm not expecting it to be a painless process, but it's one I need to go through. I don't need to use the funds for a few years so if it takes a few mths won't be an issue

ex-pat_scot

you could also transfer in stages, rather than all in one go.
I partially transferred out of SW and into my SIPP, in Dec 21
I think i "lost" about 5% by being out of the market, as the SW funds are all own-branded.
Frustrating.

dunstonh

 I want to stay in the market so intend to complete an inspecie transfer. My question is what happens if the new platform does not have the identical funds?

You won't be able to do in-specie transfers in that scenario and in all liklihood, you won't be able to do it.

The vast majority of workplace pensions use insured funds and/or in-house funds of the provider.  They don't use unit trusts/OEICs/ITs or ETFs.   

SouthCoastBoy

We have some oeics but they are a different share class than those offered by sipp platforms so I assume they can't be transferred as the ISIN is different?

dunstonh

SouthCoastBoy said:

We have some oeics but they are a different share class than those offered by sipp platforms so I assume they can't be transferred as the ISIN is different?

It doesn't stop transfer but a share class conversion may need to apply.   

What is the existing pension scheme?  It's rare for OEICs to be available on workplace pensions.   Have you checked that the scheme supports in-specie transfers? (just because its an OEIC doesn't mean it can be transferred using in-specie)